Crude oil futures slightly up on MCX
Crude oil futures were trading firm at Rs 5,790 a barrel in the domestic market, but experts believe prices may see sideway movement on speculation of Saudi Arabia increasing its oil output by June.
By PTI |
NEW DELHI: Crude oil futures were trading firm at Rs 5,790 a barrel in the domestic market, but experts believe prices may see sideway movement on speculation of Saudi Arabia increasing its oil output by June.
"Saudi Arabia is planning to hold a meeting with oil producers and consumers on June 22 to find a solution to record oil prices.
The major oil producer is expected to increase its output by 200,000 barrel per day (bpd) to 9.7 million bpd. This news is likely to keep the markets on the sidelines," Karvy comtrade Research Head Harish G told reporters.
At 1100 hrs on MCX counter, July delivery of crude oil surged 0.49 per cent at Rs 5,790 a barrel, while August delivery rose by 0.50 per cent at Rs 5,792 a barrel.
Crude oil prices rose sharply yesterday, surging to a record high of $139.89 a barrel, on account of a fire mishap in the Norwegian oil field and the weakening US dollar.
Fire break out at Norwegian oil field recorded to have a negative impact on 150,000 bpd of production of light sweet crude oil, he said.
Meanwhile, domestic futures prices surged in line with global price movement yesterday. August contract on MCX closed at Rs 5,763 per barrel after touching high of Rs 5,910 a barrel.
Harish said, "Crude oil prices are firm on MCX as it closed on a positive note yesterday. While on New York Mercantile Exchange, prices are down by 0.25 per cent at $134.36 a barrel because it retreated after it peaked to near $140 a barrel".
According to an analyst with SMC Brokerage, crude oil may continue to dip on profit-booking on recent rally.
"A sideway movement is expected...Crude oil futures would be under pressure at higher levels. It might decline to $132 a barrel in the coming days," Harish noted.
"Saudi Arabia is planning to hold a meeting with oil producers and consumers on June 22 to find a solution to record oil prices.
The major oil producer is expected to increase its output by 200,000 barrel per day (bpd) to 9.7 million bpd. This news is likely to keep the markets on the sidelines," Karvy comtrade Research Head Harish G told reporters.
At 1100 hrs on MCX counter, July delivery of crude oil surged 0.49 per cent at Rs 5,790 a barrel, while August delivery rose by 0.50 per cent at Rs 5,792 a barrel.
Crude oil prices rose sharply yesterday, surging to a record high of $139.89 a barrel, on account of a fire mishap in the Norwegian oil field and the weakening US dollar.
Fire break out at Norwegian oil field recorded to have a negative impact on 150,000 bpd of production of light sweet crude oil, he said.
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Meanwhile, domestic futures prices surged in line with global price movement yesterday. August contract on MCX closed at Rs 5,763 per barrel after touching high of Rs 5,910 a barrel.
Harish said, "Crude oil prices are firm on MCX as it closed on a positive note yesterday. While on New York Mercantile Exchange, prices are down by 0.25 per cent at $134.36 a barrel because it retreated after it peaked to near $140 a barrel".
According to an analyst with SMC Brokerage, crude oil may continue to dip on profit-booking on recent rally.
"A sideway movement is expected...Crude oil futures would be under pressure at higher levels. It might decline to $132 a barrel in the coming days," Harish noted.
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